PT Kawasan Industri Jababeka Tbk. · Building Metal Textile Others. 8 1 Jababeka Residence –A City for Your World Residential & Commercial Developments Mixed-Use Developments Facilities

0

July 2020

Investor Presentation

PT Kawasan Industri Jababeka Tbk.

1

Real Estate & Property – Very challenging• Industrial – focusing on maintaining contact digitally

with hot prospects from overseas and Indonesia itself• Residential / Commercial – focusing on online

marketing and promotion (social media andtraditional media) and offering a variety of gimmicksto entice buyers / investors

Infrastructure – Some pressure on water & port volume• Power – continues to operate in Reserve Shutdown

from time to time, PLN continues to make timelypayments and honour the PPA. Industrial 20kvcustomers volume down ~10% 5M20 vs 5M19.

• Water / Waste Water – about 7% reduction involumes in 5M20 vs 5M19 – most tenants operatebusiness-as-usual inside the industrial estate.

• Dry Port – container volumes have dropped about23% in the first 5 months of 2020 (vs 5M19) – Covid-19worsening trade war related slowdown from 2019.

Leisure & Hospitality – Not Material• Impact mostly felt in Tanjung Lesung as occupancy

levels are very low, however, still recovering from thetsunami as well – overall small contributions toearnings

• Golf course operations impacted as less golfers andless restaurant visitors have hurt revenues by about15-20%

Jababeka during Covid-19 – We Will Survive 2020

Despite Covid-19 Jababeka should be able to survive 2020 interms of cash flow.

2020 Cash Flow Overview:

Cash in:• Rp 1.1 trillion (~60% Cikarang/others, ~40% Kendal) in

cash collections expected from real estate marketingsales booked in 2019 and prior years 1Q20 actualRp240 (>95% of budget)

• FY20 Recurring EBITDA from power, water, port andother recurring businesses expected to generate Rp350-400bn – 1Q20 Rp95bn.

• Total: Rp1.5trillion - 1Q20: Rp335bn

Cash out:• Rp500bn construction and land development (~40%

Cikarang/others, ~60% Kendal) (1Q20 Rp100bn)• Rp75bn in maintenance capex (1Q20 Rp18bn)• Rp100bn land acquisition (1Q20 Rp61bn)• Rp400bn interest (1Q20 Rp146bn)• Rp350bn sg&a (excl infra) (1Q20 Rp89bn)• Rp200bn tax (1Q20 Rp21bn)• Rp50bn share buyback (made in 2Q20)

• Total: Rp1.625 - 1Q20: Rp434bn

Cash & cash equivalents position:• At 31 December 2019: Rp1.03trillion• At 31 March 2020: Rp949bn

2

Together with President University, Jababeka Groupinitiated a crowd-funding exercise, which has raised nearlyRp 7 billion (and counting) for medical equipment requiredto combat Covid-19

Collaboration with tenants Croda Indonesia, EvonikIndonesia and Danone Indonesia for the production andpackaging of hand sanitizers and disinfectant fluids – totallyproducing 15 tons so far

Together with several tenants produced 50,000 fabric facemasks for the Covid-19 task force in Bekasi

Together with President University and numerous tenantsprovided Rp 7.2 billion in to the Bekasi Regency to combatand prevent the spread of Covid-19

Distribution of free face masks in and around KotaJababeka

Providing social aid to 13 villages in and around KotaJababeka

Implemented work-from-home across the entireorganization to the extent possible

Preventive spraying of disinfectants at all office premises,providing hand sanitizer for all staff, checking bodytemperatures, etc.

Jababeka Group Joining the Fight against Covid-19

3

Leading township developer & infrastructure powerhouse

PT Kawasan Industri Jababeka Tbk. ("KIJA") is a leading township developer with an established track record in industry-based townships supported by residential & commercial components...

KIJA overview Business segments

Established in 1989 and became the first publicly listed industrialestate developer in Indonesia in 1994

Kota Jababeka, KIJA's flagship development, is a mature industry-based integrated township in Cikarang with on-site power plantand dry port

Kendal Industrial Park – Park by the Bay in Central Java, tourism-based townships in Tanjung Lesung, Banten, and in Morotai, NorthMaluku - all three enjoy Special Economic Zone status

Large and strategically located land bank of 5,108 hectares as of 31March 2020

PT Kawasan Industri Jababeka Tbk

Real Estate Infrastructure

Industrial

Residential

Commercial

Power

Water & Estate

Dry Port

Vision: To Create Modern Self Sustained Cities in Every Province in Indonesia and Provide Jobs for Better Life

FY19 Revenue Breakdown (%)(Rp 2,254 billion)

FY19 Gross Profit Breakdown (%)(Rp 843 billion – 37% GPM)

…with world class infrastructure to support its development

Real Estate & Others, 43%

Power, 37%

Water / Estate, 11%

Dry Port, 9%

Real Estate & Others, 62%

Power, 16%

Water / Estate, 15%

Dry Port , 6%

4

Milestones & Awards

19891994

1996

2001

2003

2010

2011

2016

Jababeka Group established and started development of the industrial estate

IPO on Jakarta and Surabaya Stock Exchange

Acquisition of Menara Batavia in Jakarta CBD

Inauguration of Education Park, including President University

Commenced development of Jababeka CBD

Cikarang Dry Port begins operations

Acquisition of 1,500 ha land in Tanjung Lesung, Banten

Bekasi Power Plant commenced operations

Groundbreaking Kendal Industrial Park – Park by the Bay

2013

2014

D’Khayangan Senior Living Launched

Selected awards

More than 25 years track record in township development

6th Property Indonesia Awards 2018

The Recommended Condominium

Development in Cikarang -Kawana Golf Residence

Indonesia Property Watch 2015Best Township

Development Project

Green Property Awards 2017Green water

management residential category township

Golden Property Award 2019

Lifetime Achievement Award to Mr.Setyono

Djuandi Darmono

Golden Property Award 2019

The Best Township Development Project –

Kota JababekaCikarang

5

Sizeable land bank in strategic locations with upside potential

Karawang

Note:1 Land bank as at 31 March 2020

Most established industrial area in Greater Jakarta, home to >2,000 local and multinational companies

Designated as a Special Economic Zone for Tourism

Special Economic Zone for Industrial Estate Development

Fully integrated and matured city development 35km east of Jakarta, 45mins from Jakarta’s CBD

Strategically located along the Jakarta-Semarang-Surabaya Economic Corridor

Envisaged to become a first-class integrated resort destination for both domestic and international tourists

Offers a deep pool of young and skilled labour at a competitive cost

Located 170km southwest of Jakarta and covers more than 1,500 ha of land on a peninsula facing the Indian Ocean

Tanjung Lesung Master plan: 1,500 hectares 170km southwest of Jakarta Land Bank: 1,496ha(1)

Kendal, Central Java Master plan: 2,700 hectares 450km east of Jakarta Land Bank: 587ha(1)

Kota Jababeka Cikarang Master plan: 5,600 hectares 35km east of Jakarta Land Bank: 1,238a(1)

Kota Jababeka Cikarang

Kendal, Central Java

Semarang

Surabaya

Tanjung Lesung

INDONESIA

6

JAKARTA

6 lane Highway of Jakarta Inner Ring Road

JORR 2 Toll Road

Cibitung – Tanjung

Priok Seaport±1.5

hours

KOTA

JABABEKA

Proposed MRT Station

Tranportation infrastructure(Proposed / Under Construction)

High Speed TrainLRT Track

Elevated Toll RoadMRT TrackDouble-double track Railway

KM 29KM 31

KM 34

Jakarta 2nd Outer Ring (JORR) Road

Lemah AbangTrain Station

CikarangTrain Station

LRT MRT High speed train

Commuter train Elevated toll road JORR 2

• 35 KM from Jakarta City• Close to International Airport & Seaport• Accessible by toll road and railway• Connectivity with 3 Toll Access / Exit• Development of Major Transportation

Infrastructure

Kota Jababeka — Flagship industry-based integrated township1

Kota Jababeka is a mature industry-based township strategically located in close proximity to Jakarta CBD, sea port andairport…

7

Kota Jababeka – Anchored by a blue-chip customer base

Portfolio of high quality customersDiverse mix of occupants across sectors (breakdown by number of occupants as of 31 March 2020)

1

The portfolio of high quality multinational and domestic customers at Kota Jababeka is a testament to the township'sstrategic location and superior infrastructure facilities

Kota Jababeka is home to over 2,000 local and multinational customers from over 20 countries

11%

7%

6%

6%

5%

5%

4%3%4%2%

47%

Electronics

Machinery

Consumer

Chemicals

Automotive

Plastics

F&B

Building

Metal

Textile

Others

8

Jababeka Residence – A City for Your World1

Residential & Commercial Developments

Mixed-Use Developments

Facilities

Oscar Townhouse Cluster

Sudirman BoulevardCommercial Center

Hollywood Junction, Monroe & Elvis Tower

International Hotels

Hospitals President University &

Reputable Schools

Jababeka Golf & Country Club

Senior LivingD’Khayangan

Jababeka StadiumJababeka Convention Center

KM 29

KM 31

KM 34

9

Kota Jababeka – Enhancing value through Joint Venture projects1

“Riverview Residence”

“Kawana Golf Residence”

Joint Venture between Jababeka (51%)and PT PP Property (Persero) Tbk (49%)

4 apartment towers strategicallylocated near the toll exit & catering tothe lower end of the market

Tower 1 (1009) – Mahakam Tower–> 90% sold, 32% handed over

Tower 2 (939) – Bengawan Tower–> 28% sold, piling completed

Kawana Golf Residence is a JV betweenJababeka (60%) and Creed Group (40%)from Japan

High-end golf view apartment tower with234 units

Total 100% sold– delivery scheduled forlate 2020 – construction progress at 69%as of May 2020

Kawana 2 in the planning stage

Other JVs within the KIJA group include: 1) “Little Tokyo” – a JV between PT PP Property (Persero) Tbk (52.6%) and Jababeka (47.6%) for a mixed use superblockon a 4.6-hectare site with 6 apartment towers and a Japanese style mall; 2) “Mayfair Estate & Park Land” – a JV between PT Plaza Indonesia Realty Tbk (70%) andJababeka (30%) for a mixed use superblock on a 12-hectar site right next to the golf course; 3) “Paradiso” – a JV between Jababeka (52%) and Keihan Real Estate(48%) from Japan to develop a 2.7 hectare high-end golf villa residential project.

10

WWTP 2

Capacity

125 L/sec

Enhancing Kota Jababeka's value proposition: Jababeka Infrastruktur

PT Jababeka Infrastruktur provides top notch to infrastructure and services, including clean water provision, waste water treatment, estate management, and other services such in-house fire brigade, 24 hour security, fiber optics, natural gas and others…

…which meet the international standards and operate in accordance with environmentally friendly policies in integrated city Kota Jababeka in Cikarang

Waste Water

Treatment Plan

Telco Natural Gas

Water Treatment

Plan

WWTP 1

Capacity

208 L/sec

WTP 2

Capacity

200 L/sec

WTP 1

Capacity

400 L/sec

2

11

Enhancing Kota Jababeka's value proposition: Bekasi Power Plant

Integrated Power Generation & Distribution Process

PLN

Factories

100% output to PLN

Buy back from PLN (+ margin)

1

2

Direct sale to factories(+ margin)

3

130MW gas fired combined cycle plant 20 year 100% off-take agreement from

Perusahaan Listrik Negara (“PLN”)– Rate per KWH: ~US$11 cents– Average gas cost / MMBTU: ~US$8.7– Fuel costs borne by PLN on a pass-through

basis– Fully contracted gas supply– Flexibility to buy back power and resell to

industrial customers at a premium During repair of a leakage in one of the boilers

the power plant operated at about 50% of theusual capacity for about 3 months in 2016

The power plant was in full “reserve shutdown”for most of 1Q18 and 2Q19 and has operatedintermittently in other quarters of 2018, 2019,and 1Q20 – 2Q20 mostly full reserve shutdown

Financial Highlights

2

IDR billion

Providing a significant marketing advantage over its competitors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia

KIJA is the only industrial estate developer in Indonesia with its own power plant located within its estate

1,499

1,310 1,360

1,102

832

222 215 164 232 248

136 27

14.3%12.5%

17.1%

22.5%

16.4%

12.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017 2018 2019 3M20Revenue Gross Profit Gross Profit Margin

12

Enhancing Kota Jababeka's value proposition: Cikarang Dry Port2

Strategic location in the heart of the largest manufacturing zone along the Bekasi-Cikampek industrial corridor…

International Port Code: IDJBKSurrounded by 12+ Industrial Estates and more than 3,000 manufacturing companiee

JABABEKA

MM 2100

EJIP LIPPO

HYUNDAI SURYA CIPTA

KIKCKIM

KBI

KIIC

GIIC

62%1

Notes:

1 Estimated % of total throughput at Tanjung Priok Port originating from this area

Cikarang Utama

Toll Gate

New Toll Gate KM

29

Flyover to Jakarta

Highway Exit KM 29

Enhanced Accessibility with New Toll Gate KM 29

Airport

CFLD

13

Enhancing Kota Jababeka's value proposition: Cikarang Dry Port2

Mobile X-Ray

Reefer

Container Yard

Office: CDP,

Quarantine,

& Banking

Container Freight Station

Gate

Port Code:

IDJBK

Bonded

Logistics

Center

(PLB)

Railway

Emplacement

Customs3rd Party

DCNew Office

& PLB 2

Physical

Inspection

200 ha of

integrated port & logistics facilities

14

Enhancing Kota Jababeka's value proposition: Cikarang Dry Port

OverviewRevenue (IDR billion)

Throughput (TEU)

2

Selected customer & partner profile at Cikarang Dry Port Shipping Lines:

Third Party Logistics Provider (3PL):

Shippers / Consignees:

Strong momentum in CDP operations

…allowing customers to more efficiently manage their imports and exports and benefit from cost savings

Cikarang Dry Port (CDP) is the first and only integrated customs, quarantine and logistics facility in Indonesia…

Since 2012, Cikarang Dry Port is an official port of origin and destination with international port code IDJBK – now connected with 25 major shipping lines

Integrated port and logistics facilities with multi modal transportation services

Smart Port Solution to streamline the business process

Besides export/import, CDP also serves domestic distribution via main railway line that runs from west Java to east Java and also combining it with domestics shipping lines services

Bonded Logistics Centre (FTZ facilities) for Cotton & minerals/metals

120

151 171

225

202

42

-

50

100

150

200

250

2015 2016 2017 2018 2019 3M20

50,844

65,250 73,946

95,314

82,161

16,713

-

20,000

40,000

60,000

80,000

100,000

120,000

2015 2016 2017 2018 2019 3M20

15

Diversified land bank3

Positioning

Real Estate(2): 43% Recurring(3): 57%

Land Bank

Total(1): 5,108ha

Kota Jababeka Kendal Tanjung Lesung Morotai

Positioning Established MNCs anddomestic companies willing topay a premium for strategiclocation and maturetownship with top notchinfrastructure in place

More cost-consciouscustomers looking for analternative to Greater Jakartaindustrial estates that stillprovides top notchinfrastructure

Tourism, leisure andhospitality focused integratedtownship to tap intoentertainment/leisurespending by rising middleclass in Indonesia

Future tourism and logisticshub strategically located inthe heart of Pacific Asia withnatural tropical beauty andWorld War 2 historic sitesand relics

Notes:1 As per 31 March 20202 Comprises real estate, golf and other non-infrastructure segments3 Recurring revenue includes contribution from power plant, dry port and service & maintenance fees

…in addition to benefiting from future infrastructure developments across its land bank locations

A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience…

Diversified by geography, positioning and segment

Well diversified across multiple segments (Breakdown of segments by FY19 revenue contribution)

19% 2% 5% 10% 1% 3% 3% 37% 11% 9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Developed Land Factory Buildings Commercial Residential Tourism Golf Others Power Plant Water & Estate Services Dry Port

1,238ha 587ha 1,496ha 1,787ha

16

Kendal Industrial Park – Park by the Bay4

Tanjung Emas International Seaport 25 km

Ahmad Yani International Airport 20 km

Semarang (Central Java capital) 21 km

Semarang

Tanjung Emas Seaport

Ahmad Yani Int'l Airport

Kendal Port

Distance to Kendal Industrial Park – Park by the Bay

“Kendal Industrial Park – Park by the Bay”

Joint Venture between Jababeka (51%) andSembcorp (49%) from Singapore

Special Economic Zone for Industrial Estates Benefits from Sembcorp’s expertise in

developing and marketing industrial estatesacross Asia (China, Vietnam, Indonesia) andJababeka’s long track record and experience inindustrial estate development andinfrastructure operations

Total planned area of 2,700ha; phase 1: 860ha Excellent connectivity to major infrastructure

and amenities

Official opening ceremony on November 14th 2016 by the President of Indonesia, Mr Joko Widodo, and the Prime Minister of Singapore, Mr

Lee Hsien Loong

17

Kendal Industrial Park – Park by the Bay4

Key Highlights

Macro infrastructure planning that supports growth of Kendal Industrial Park – improved connectivity andaccessibility (for example newly opened Trans Java toll road and new Ahmad Yani Airport)

Competitive manpower / low labour costs in Central Java makes Kendal Industrial Park – Park by the Bayparticularly interesting for labor intensive industries

Numerous human resources education & training facilities

Top notch infrastructure & One-stop solution for licensing, manpower recruitment, on-site logistics, securityand estate management services

Our Kendal Industrial Park – Park by the Bay development in Central Java is well-positioned to benefit from growing demandfor relatively low cost industrial estates with good connectivity and competitive labor costs

Tenant breakdown (62 confirmed tenants)

Indonesia

49%

China

25%

19%

Taiwan

1%1%1%

1%

34%

Fashion Industry

10%

Food &

Beverage

2% 2%

2%

4%

5%

6%

7%

15%

12%

Logistic & Warehouse

Packaging

Electronic

1%

18

Kendal Industrial Park – Park by the Bay4

19

Tanjung Lesung4

President Joko Widodo speaking on Tanjung Lesung’s designation as Special

Economic Zone for Tourism

Tanjung Lesung overview

Location ~ 170 km southwest of Jakarta in Banten

ConceptTourism-based integrated township (hotels,apartments, sailing, diving & beach clubs)

AccessCurrently accessible by toll road from Jakarta in~ 3.5 hours

Australia

Indonesia

Malaysia

Singapore

Tanjung Lesung

Merak

AnyerKrakatauMountain

Labuan

Pandeglang

Panimbang

Future Toll road

PanaitanIsland

Ujung KulonNational Park

JakartaSerang

Jakarta-MerakToll Road

SOEKARNO – HATTAInternational Airport

Tanjung Lesung

20

Tanjung Lesung4

Strong government support for development of Tanjung Lesung

One of 10 New Tourism Destinations in Indonesia that the Indonesian Government ispromoting

New toll road from Serang Timur to Panimbang: A consortium led by PT Wijaya Karya Tbk(Persero) won the tender for this project, land acquisition is ongoing and construction hascommenced

Tanjung Lesung has been designated as Special Economic Zone for Tourism

Facilities and infrastructure at Tanjung Lesung

Existing infrastructure includes access roads, a water treatment plant, wastewater treatmentplant, electricity supply and telecommunication links

Visitors currently have access to ~ 300 rooms spread out over two hotels/resorts, a bed andbreakfast and several cottages

Other facilities: restaurant and bar, golf course, swimming pool, spa, beach club, sailing club,private air strip, school, mosque, residential housing units, and a medical clinic

…is expected to increase interest from potential investors/partners for the project

Villa with private pool at Tanjung Lesung

Golf course

Aerial view

Strong government support for Tanjung Lesung's development as a tourism zone...

21

Tanjung Lesung4

KALICAA VILLA

Current property products

Tanjung Lesung Beach Hotel

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Morotai is a Special Economic Zone fortourism and 1 of 10 new tourism destinationspromoted by the government

3 hours flight from Singapore and Taipei

Beach view at Morotai

Evening view at Morotai

Great potential for tourism, agricultural andfishing industries, and as a logistics hub

Future tourism and logistics hub strategically located in the heart of Pacific Asia with natural tropical beauty and World War2 historic sites and relics

4 Morotai

23

Clear strategic focus5

Long Term Vision

Short Term Medium Term

Continue to develop and capitalize on Kota Jababeka Township

Further development of Kendal Industrial Park in partnership with Sembcorp in Central Java

Development of Tanjung Lesung tourism-based township

Development of Morotai, initially as a tourism-based township, longer term also as a logistics hub and for agriculture /fishery industries

Replicate Kota Jababeka's industry-based integrated township model throughout Indonesia

Build out an infrastructure facility portfolio (power, water, ports, etc.) to support these new townships

KIJA's existing pipeline provides visible opportunities over different time frames

24

331 427

150 67 141

(760)

(1,000)

(800)

(600)

(400)

(200)

0

200

400

600

2015 2016 2017 2018 2019 3M20

1,868 1,723 1,774 1,570 1,291

333

1,272 1,208 1,221

1,142

963

140

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017 2018 2019 3M20Recurring revenue Real estate & other revenue

Revenue breakdown (IDR billion)

Financial Highlights6

Notes:1 Approximate unrealized foreign exchange loss (non cash) for FY15: IDR 156 billion, FY18: IDR 248 billion, 3M20: IDR 699 billion2 Approximate unrealized foreign exchange gain (non cash) for FY16: IDR 135 billion, FY17: IDR 59 billion, FY19: IDR 158 billion – and in FY17 additional 1-off expenses of Rp 175bn as a result of redemption of 2019 senior notes

Gross profit (IDR billion) and Gross profit margin (%)

EBITDA (IDR billion) and EBITDA margin (%)

3,1402,931 2,995

2,712

Net income (IDR billion)

(1)

(2)

(2) (1) (2)

2,254

474

1,389 1,243

1,137 1,179

843

163

44%42%

38%

43%

37%34%

20%

25%

30%

35%

40%

45%

50%

55%

60%

0

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017 2018 2019 3M20Gross profit Gross profit margin

1,167

1,025

914 950

672

119

37%35%

31%

35%

30%

25%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

0

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018 2019 3M20

EBITDA EBITDA margin

3M20

(1)

25

3.4 3.1

2.3

2.7

1.8 1.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2015 2016 2017 2018 2019 3M20

827 792 895 884 1,086 1,031 0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2015 2016 2017 2018 2019 3M20

Cash and cash equivalents Total assets

Balance Sheet Highlights6

Notes:1 Includes capitalized interest + Hedging Fees2 LTM

Assets and cash (IDR billion) Debt, Equity (IDR billion) and Debt/Equity (x)

EBITDA/Interest expense (x)(1) Net debt/EBITDA (x)

9,74110,734

11,22611,784 12,185

(2)

12,214

3,510 3,565 4,041

4,359 4,177

4,912 4,978

5,638 5,900 6,053

6,307

5,505

0.71

0.63

0.68 0.72

0.66

0.89

0.50

0.55

0.60

0.65

0.70

0.75

0.80

0.85

0.90

0.95

1.00

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2015 2016 2017 2018 2019 3M20

Total debt Total equity Debt/Equity

2.3 2.7

3.4 3.7

4.6

6.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2015 2016 2017 2018 2019 3M20 (2)

26

1Q20 Financial Highlights Press Release6

PT Jababeka Tbk (“KIJA”) recorded a total revenue of Rp 473.7 billion for the first quarter of 2020, a decrease of 19% compared to the first quarter of 2019.

The Company’s Land Development & Property pillar saw revenue decrease 29% to become Rp 119.6 billion in 1Q20, from Rp 169.4 billion in 1Q19. This decrease was

mainly caused by a reduction of sales of developed land plots from Rp 110 billion in 1Q19 compared to Rp 35.1 billion in 1Q20, whereas all other land development and

property sub-segments saw an increase in 1Q20 compared to the same quarter of 2019.

Please note that the Company is preparing its financial statements in compliance with PSAK 72, which means that the Company recognizes the property's revenue

when the control of the goods is transferred to the customer. This means that the Company no longer recognized revenue of property by means of percentage of

completion.

The Infrastructure Pillar revenue decreased 16% to become Rp 333.5 billion for the first three months of 2020, compared to Rp 395.1 billion over the same period of

2019. The main reason for this was a decrease in revenue from Bekasi Power by Rp 52.5 billion as the power plant operated less in 1Q20 compared to 1Q19 due to

more Reserve Shutdown on the request of PLN. Recurring revenue from the Infrastructure pillar contributed 70% to total revenue in the first quarter of 2020, compared

with 68% in 1Q19.

KIJA’s Leisure & Hospitality pillar posted a 2% increase in revenue to become Rp 20.6 billion in the first quarter of 2020.

The Company’s gross profit decreased by 27% to become Rp 162.6 billion in 1Q20, versus Rp 222.0 billion a year earlier. At the same time, KIJA’s consolidated gross

profit margin for the first quarter of 2020 was recorded at 34%, compared to 38% in the same period of 2019. The lower gross profit margin was mostly caused by a

lower margin from the Real Estate & Property pillar, which was caused by product mix; less contribution from higher margin developed land products. The Infrastructure

gross profit margin improved from 21% in 1Q19 to 23% in 1Q20, whereas the Leisure & Hospitality gross profit margin slowed from 28% in 1Q19 to 26% in 1Q20.

KIJA booked a net loss of Rp 759.8 billion in the first quarter of 2020, compared to a net profit of Rp 74.3 billion in 1Q19. The main reason for this difference is caused

by the impact of foreign exchange (forex) movements as the Company booked a forex loss of Rp 699.1 billion (translation loss) in 1Q20 compared to a forex gain of Rp

56.9 billion in 1Q19.

The Rupiah depreciated from Rp 13,901 per 1 US Dollar at the start of the year to Rp 16,367 at closing on 31 March 2020. The Company has hedged US$ 200 million

notional from its US$ 300 million bonds outstanding up to an upper strike of Rp 15,997. The unhedged portion of US$ 100 million and the fact that the Rupiah

weakened to a level above the upper strike is the main reason for the large forex loss. Furthermore, our mark-to-market values on our hedging contracts are provided in

US Dollar currency and with a weakening Rupiah these values in US$ currency become less, particularly because the USD-IDR forward at the time of maturity of the

hedging contracts is used as a basis.

Given where the USD-IDR is at the time of releasing this (around Rp 14,200-14,400 per 1 US Dollar) a great chunk of the forex loss above would be recuperated.

In terms of EBITDA, 1Q20 recorded Rp 119.0 billion compared to Rp 187.6 billion in 1Q19, largely in line with the reduction in gross profit in absolute amount.

Please contact us at [email protected] if you want to be included in the Company’s distribution list

27

1Q20 Marketing Sales Realization6

KIJA realized Rp 111bn in Marketing Sales in 1Q20, down by 50% compared to 1Q19 - 2Q20 sees a small

improvement despite Covid-19 and the Islamic fasting month / Eid celebrations.

Unit M2 Amount (RpK)

100% Consolidated / Wholly Owned - Subtotal: 50 21,417 110,135,468

Land Plots - Cikarang 3 14,761 42,004,500

Industrial Buildings - Cikarang

Landed Houses - Cikarang 37 2,789 22,325,368

Commercial / Shop Houses - Cikarang 9 3,867 44,978,600

Apartments - Cikarang 1 387,000

Tanjung Lesung, Rental & Other 440,000

Joint Venture - Attributable subtotal: 336,798

Land Plots - Kendal * 51% - - -

Industrial Buildings - Kendal * 51% - - -

Apartments - Kawana ** 60% - - -

Apartments - Riverview *** 51% - - 660,388

Total attributable marketing sales 110,472,266

Total marketing sales 50 21,417 110,795,856

* Joint Venture between Jabebeka (51%) and Sembawang Corporation (49%) for the development of

Kendal Industrial Park in Central Java

** Joint Venture between Jababeka (60%) and Creed Group (40%) for the development of Kawana

Golf View Residences in Cikarang

*** Joint Venture between Jababeka (51%) and PT PP Property Tbk (49%) for the development of

Riverview Residences in Cikarang

DescriptionQ1

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4.5

0.5

2.0

0.3

1.7 2.4

0.6 0.5 0.3

-

2.0

4.0

6.0

8.0

10.0

12.0

2020 2021 2022 2023 2024

Standard Chartered Bank Central Asia Bank Tabungan Negara

Bank Negara Indonesia Global Notes

Debt Maturity Profile (Million USD)

Total Debt as of 1Q20 IDR 5.1 trillion equivalent (1 USD = 16,367 IDR) – average cost of debt 6.55% p.a.

Bank Loans (unaudited)

Bank Tabungan Negara IDR 79bn as per 3M20 10.5% p.a. Construction Loan (JV w PT PP – Riverview)

Bank Central Asia USD 2.4mn as per 3M20 5.75% p.a. Project loan (warehouse in logistics park)

Standard Chartered Bank USD 4.5mn as per 3M20 3M LIBOR + 3.75% p.a. Working Capital at Bekasi Power (rolling)

Bank Negara Indonesia IDR 13bn as per 3M20 11.75% p.a. Construction Loan (JV with Creed – Kawana)

Global Notes US$ 300 million Guaranteed Senior Notes Due 2023 (7NC4) 6.5% p.a.

Hedging Practice

US$ 200 million notional is hedged by means of call spreads with an average lower strike of 13,021 Rupiah and an average upper strike of 15,997 Rupiah

Recurring revenue provides stability and visibility of cash flows , which are partially based on USD pricing terms (power & water) providing a natural hedge for USD-denominated interest expenses

Fixed vs Floating Interest Rate

IDR vs USD Debt

Debt Overview – As of 31 March 20206

300

2%

98%

IDR

USD

1%

99%

Floating

Fixed

Notes:1 Excludes Rp2bn working capital facility at PT Banten West Java at 12.5% average interest rate & Finance Lease payables amounting to Rp3bn

(1)

(1)

29

Experienced management team7

Board of Commissioners

Board of Directors

Setyono Djuandi Darmono

President Commissioner

(Founder)

Bacelius Ruru

Vice President Commissioner

Independent Commissioner

Hadi Rahardja

Commissioner

(Founder)

Gan Michael

Commissioner

Budianto Liman

President Director

Setiawan Mardjuki

Director

Hyanto Wihadhi

Director

Sutedja Sidarta Darmono

Director

Tjahjadi Rahardja

Director

Average of more than 25 years of industrial township development experience

Basuri Tjahaja Purnama

Director

30

Land bank Size (ha) ASP (Rp million) NAV (Rp bn)

Cikarang Inventory 165 4.00 6,584

Land for Development* 1,074 0.55 5,905

Kendal Inventory 0.4 1.50 6

Land for Development* 587 0.35 2,054

Tanjung Lesung Inventory 22 1.00 224

Land for Development* 1,473 0.25 3,683

Morotai Inventory 465 0.20 931

Land for Development 1,321 0.02 264

Subtotal land bank 19,651

Infrastructure & Others (DCF) 2,677

Add (cash, advances, investments in associates, deposits, etc) 2,430

Deduct (loans, customer advances, etc) (6,190)

Total NAV 18,568

Number of shares (billion): 20.82

NAV per share 892

Share Price 142

Discount to NAV 84%

Disclaimer:

The purpose of this section is to provide shareholders, bondholders, analysts, brokers/dealers, potential investors and other capital market participants with a general

overview of the Company’s internal net asset value (NAV) calculation. The information is provided for quick reference only.

The information provided is not an offer to sell securities or the solicitation of an offer to buy securities. The information has been compiled from sources believed to be

reliable. The information contained in this section is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information

concerning the Company. The Company makes no representation regarding, or assumes any responsibility or liability for, the accuracy or completeness of, or any errors

in or omissions from, any information contained herein.

KIJA NAV – As per 31 March 20208

* Replacement value

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